Health Freedom Advocate: ACA Lawsuit Impact Potentially Huge

An Obamacare lawsuit before a federal court in Washington could have a potentially huge impact on President Barack Obama's landmark healthcare law, says Twila Brase, president of Citizens' Council for Health Freedom.

"The impact is potentially huge," Brase told J.D. Hayworth and Morgan Thompson on "America's Forum" on Newsmax TV on Tuesday.

The Obamacare lawsuit in question, Halbig v. Sebelius, is currently before the U.S. Court of Appeals for the District of Columbia Circuit, and it alleges that subsidies given to Americans who signed up for health insurance through the federal exchange website, HealthCare.org are illegal.

"Halbig is challenging the IRS because the IRS decided that they could provide subsidies, premium subsidies for Obamacare through the federal exchange when the law itself says that subsidies are only [available] through the state exchanges," Brase explained.

"The bone of contention is that there is a clear writing of the law which says that the only place that you can get federal premium subsidies is through state-based exchanges," she added.

"Now, there's only 14 states and Washington, D.C. that have their own exchange," the president of the Citizens' Council for Health Freedom said. "So according to Halbig . . . those are the only states where subsidies should be available."

"If the court rules for Halbig, it would mean that in 36 states there would be no premium subsidies," she added. "For any of those folks who are on the federal exchange or HealthCare.gov, what it would also mean is in those 36 states there would be no penalties and no mandates because the two are hinged together."

She said that if the judge rules in favor of Halbig that it will not "take the law off the books." However, "if people do not get premium subsidies" they won't be able to afford it, and Obamacare will no longer be functional.

An Obamacare lawsuit before a federal court in Washington could have a potentially huge impact on President Barack Obama's landmark healthcare law, says Twila Brase, president of Citizens' Council for Health Freedom.